I'm curious what people here think is a lowball offer. Even pretend you're optimistic about the market when answering this.
Is an offer of 90% + closing costs + a small allowance for some maintenance that should have been done a lowball, when the asking price is the same price that was paid in 2005-2007??
According to a local real estate agent, that I should probably no longer work with, it's a low ball offer and I'm making him look bad.The comment appears here.
A couple responses have already rolled in, and they're reproduced in the comments after this post.
So what about it? What constitutes a "lowball" offer in an area that faces these issues:
- skyrocketing inventory
- Jan 1 - June 1 2010 closed sales are not just below those during 2009's Great Recession, but lower than 2008 (07, 06, 05, 04 etc.)
- June 2010 Cville Albemarle contracts are at an 11 year low
- May 2010 contracts plunged after the Federal Gov't Tax Cred ended
- There are multiple reasons prices will continue declining in this area
- The Virginia Housing Development Authority has defined the difficult conditions and issues that must be resolved before a "bottom" is reached in this market
- The asking price is often divorced from selling price (and original asking prices are hard to keep track of)
- A growing foreclosure problem - Q1'10 up 72% over Q109
- A growing "shadow inventory" where the number of foreclosures in Q1 was the equivalent of 70% of properties sold
- The area's most widely-read Realtor has been saying "sold comparable sales" matter less, and saying so since 2007
- This is an area where anecdotally, "the turn" in the market - a price and sales rebound - seem to still be actively considered a possibility by sellers and their agents (RealtorsTM and otherwise), local and national data aside: it's as if always just a few weeks or months or, at most, one or two Quarters away...any second now, everything will be "fine" and there's still an idea that due to military, UVA, and health care, this is a "protected market."